On the morning of April 6, at a conference of full-time National Assembly deputies, The Ministry of Finance is suggested managing the petrol stabilization fund instead of keeping it at the enterprise as it is in case of deliberate misuse.

It was raised by a delegate from Dong Thap province at the discussion session on the Price Law (amended) project. According to Mr.Hoa, the Petrol Stabilization Fund is an off-budget one. Indeed it is the money deducted per liter of petrol and oil sold and is accounted separately currently at the enterprise. When there is market fluctuation, the management agency - The Ministry of Industry and Trade, will use this fund to regulate and limit gasoline prices from rising too high. "The Ministry of Finance is required to manage the fund which comes from the people's contributions. That businesses use it for their other purposes is not reasonable," he suggested.
Another delegate, the Vice Chairman of the Committee for Culture and Education, clarified the shortcomings in managing the fund in the past. In particular, the Petrol Stabilization Fund is not a state budget, while the State management agency has the right to decide how it is used. Leaving the fund at the enterprise, in many cases, leads to a rapid increase in prices or a slow decrease compared to the world. 

For example, when the petrol price is low, the price should be 10 VND. In reality, however, people have to spend 13 VND, and 3 VND will be added to the petrol price stabilization fund. On the contrary, when there is a petrol price increase, the management agency uses 3 VND from this fund to reduce the retail price. It takes money from the people to stabilize the price. "This leads to unclear and open fund management in business. Even they also complain that the funds deducted are negative when the price is too high", said Mr. Ha.

However, the majority of opinions in the Standing Committee of Finance and Budget - the body that examines the draft Law on Price (amended) - are that we need to maintain the fund to stabilize petrol in the current conditions. It is because the petrol market has not fully operated according to the market. This fund is one of the tools of price regulation, not an administrative intervention.

 "We still manage the domestic petrol and oil retail market through the base price, and the price adjustment cycle is still relatively long. Also, the petroleum reserves are thin. Then it is not appropriate to remove the fund", a delegate stated. The National Assembly deputies also agreed to maintain the Petrol Price Stabilization Fund in the current situation, but the Government needs a roadmap further. "It is unreasonable and unfair," said Mr. Pham Van Hoa. 
Meanwhile, Mr.Ha suggested that the State intervene with petrol policies and reserves in the long run. In addition, the draft law needs to clarify the operation and management mechanism, especially the source of fund formation and operation time. "When the State manages the fund, they can use the national budget to intervene in the market when there are fluctuations. It is necessary to minimize the mobilization of resources from people and businesses to the fund", said Mr. Hoa.

Since the Petroleum Price Stabilization Fund is under enterprises' control, the Finance and Budget Committee proposed the Government study a more appropriate management plan, ensuring clarity on the current situation of the source and use of the fund. The draft Law on Prices (amended) will be discussed and commented on by the National Assembly in May.